"Under the Chinese Constitution, the NPC is the highest organ of state power in China. It meets annually for about 2 weeks to review and approve major new policy directions, laws, the budget, and major personnel changes. These initiatives are presented to the NPC for consideration by the State Council after previous endorsement by the Communist Party's Central Committee. Although the NPC generally approves State Council policy and personnel recommendations, various NPC committees hold active debate in closed sessions, and changes may be made to accommodate alternate views...

"...The government's efforts to promote rule of law are significant and ongoing. After the Cultural Revolution, China's leaders aimed to develop a legal system to restrain abuses of official authority and revolutionary excesses. In 1982, the National People's Congress adopted a new state constitution that emphasized the rule of law under which even party leaders are theoretically held accountable.

"Since 1979, when the drive to establish a functioning legal system began, more than 300 laws and regulations, most of them in the economic area, have been promulgated. The use of mediation committees--informed groups of citizens who resolve about 90% of China's civil disputes and some minor criminal cases at no cost to the parties--is one innovative device. There are more than 800,000 such committees in both rural and urban areas.

"Legal reform became a government priority in the 1990s. Legislation designed to modernize and professionalize the nation's lawyers, judges, and prisons was enacted. The 1994 Administrative Procedure Law allows citizens to sue officials for abuse of authority or malfeasance. In addition, the criminal law and the criminal procedures laws were amended to introduce significant reforms. The criminal law amendments abolished the crime of "counter- revolutionary" activity, although many persons are still incarcerated for that crime. Criminal procedures reforms also encouraged establishment of a more transparent, adversarial trial process. The Chinese constitution and laws provide for fundamental human rights, including due process, but these are often ignored in practice."

Interesting. The Chinese government has at least introduced the principle of a legal system that is pre-eminent over all individuals, including the Party. Is such a system becoming more significant in China today, and can its significance continue to grow?

Business will not prosper under an unaccountable government which makes arbitrary decisions. And while the Chinese campaign against corruption has been brutal, it is at least a campaign for something badly needed.

Traditionally, the central government was the source of all power and wealth. The only ways to an affluent lifestyle were to be born into a noble family or pass the civil service exam. Now there are millionaires all over China with their own collective power base independent of the government. As much as the Party might like to control them, its power is offset by economics. Witness the recent struggle between the Beijing and Shanghai factions, with Shanghai representing more commercial interests.

I didn't know all this stuff about the legal system. It's fascinating. And there's a part of Chinese history that supports it. I think Confucius needs to be resurrected to promote good principles of governance.

4. Maybe the "North Capital/South Capital" Rivalry May Not be the Best Indicator

but rather the central government versus those groups traditionally out of power for various reason.

Some of the greatest panegyrics of capitalism came from Karl Marx. He believed that before the bourgeoisie became the oppressiing class, they did humanity the great service of undermining and ultimately destroying monarchical rule.

Once power comes from multiple sources, stakeholders must seek allies, and the central government cannot simply rule by fiat, China is halfway to democracy.

have been so far while retaining the basic Communist form of government. I suppose the Vietnamese have now had a similar type of success (at a lower level).

The Chinese communist have shown tremendous flexibility so far. I see the Shaghai/Beijing conflict as less of a north/south dichotomy than a central/peripheral one. Of course, there is a geographic aspect to it. I suppose such decentalization tendencies have always been in China, though I don't know their history well.

Not that Maoist communism was any better, but the form of capitalism that China practices isn't far off from fascism: state control of the economy to benefit corporations in the absolute sense. For example, no zoning laws, since the state will shove new building projects down people's throats, since they can.

like they've had for over 2000 years. As far as caring for the needs of the average citizen, there's less of a safety net in China than most capitalist countries -- again, a long tradition. For example, even during the cultural revolution, health insurance did not extend to the spouse or family of government employees, even if they were Communist party members.

I have a general impression that Vietnam is more like Cuba, and more attentive to its citizens' needs.

The Bush administration will not stand for it. Their buddies rely heavily on China being communist in nature so they can keep the wage to the minimum. Imagine if those Chinese got a minimum wage? Then Walmart will go out of business.

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